It’s been an insane week, and it’s not even over. One hundred hours ago, I had just emerged from a hellacious technical nightmare and, exhausted as I was, needed to face a dynamic trading week. Monday was, of course, fantastic, although the days that followed were a lot bumpier.
This morning appears quite promising, as all equity futures are ready and the latest inflation data is NOT what the bulls want to see. Month over month PPI is, for the second month, WAY over expectations:
Whereas the core PPI is likewise way over expectations for the second month in a row, with today’s number between more than DOUBLE the projection. Simply stated, the notion that the Fed is going to fall all over itself to cut interest rates is to give the bulls a flimsy reason to buy more stocks is preposterous, since it’s quite obvious inflation is heating up again.
As I predicted/hoped a couple of days ago, this is helping volatility get friskier in a big hurry.
I would also add the rapidly rising price of crude oil is going to help neither inflation data nor the quailty of life in general.
This week, strangely, has had about “one stinker a day” for me with respect to trades. AXON was nasty, SGHC was nasty, and there was another one my brain is too fried to even remember. The latest is DELL whose put options, mercifully, I sold a week ago but against which I did have a small short position. It’s blasting higher right now, so hopefully I’ve fulfilled my penance for the day.
Broadly speaking, though, things are looking good on the bearish side of equities, now that the NVDA price spike (arrow) cleared the dance floor. Here’s the /NQ:
In spite of occasional stinkers, I still believe in price patterns because let’s face, there are things that happen in life which often provide mysterious prescience about the future that is yet to be.
